PM Modi Urges IT Sector to Build AI Products and Platforms

AI Transformation: PM Calls for Shift Beyond IT Services

Prime Minister Narendra Modi has called on India’s information technology industry to expand its focus from traditional service delivery to the creation of artificial intelligence products, platforms and scalable solutions. Addressing ANI, the Prime Minister stated that AI represents both a major opportunity and a structural shift for the sector, emphasising that artificial intelligence is transforming—not replacing—the IT industry.

From Services to AI Innovation

India’s IT sector has long served as a cornerstone of services exports and economic growth. However, the Prime Minister highlighted the need for domestic firms to develop proprietary AI-driven products and enterprise-grade platforms. While general-purpose AI tools are now widely accessible, high-value AI adoption remains concentrated in specialised enterprise use-cases, where established IT companies continue to play a critical role in solving complex business challenges.

Observers interpret the remarks as an encouragement for Indian software service firms—traditionally known for outsourcing and consulting—to build intellectual property, product ecosystems and AI-native technologies. This shift aligns with broader global trends, where AI-first companies are reshaping competitive dynamics across the technology landscape.

India as an AI Creator

Reinforcing the Atmanirbhar Bharat vision, the Prime Minister stressed that India must emerge as a technology creator rather than merely a consumer. He articulated an ambition for India to rank among the world’s top three AI powers, with indigenous AI models deployed globally and capable of serving users in diverse native languages. The vision also includes scaling AI startups and generating high-quality employment.

Addressing Job Disruption Concerns

Acknowledging anxieties regarding AI-led job disruptions, the Prime Minister emphasised skilling and re-skilling initiatives. He noted that technological progress historically alters the nature of work rather than eliminating employment altogether, with innovation generating new job categories.

Exam-Focused Points

• India’s IT sector is a major contributor to services exports and GDP growth .

• AI adoption is shifting from general-purpose tools to enterprise-grade solutions .

• Atmanirbhar Bharat emphasises domestic technological capability and innovation.

• AI-driven transformation necessitates skilling and workforce adaptation .

• Technological revolutions historically create new economic opportunities .

Policy and Economic Significance

The statement reflects India’s strategic emphasis on AI-led innovation, digital competitiveness and long-term economic resilience. By advocating a transition toward AI products and platforms, the government signals a policy orientation favouring value creation, intellectual property development and global technological leadership.